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Investors who purchased or otherwise acquired Hertz Global Holdings Inc. common stock between Jan. 6, 2023, and April 24, 2024, may be eligible to claim a cash payment from a class action settlement.
Hertz Global Holdings, Stephen M. Scherr and Alexandra Brooks agreed to pay $10 million to settle a securities class action lawsuit alleging they made misleading statements and omissions about demand for and forecasts regarding Hertz's electric vehicle rentals.
Who can file a claim?
The settlement includes all persons and entities who purchased or otherwise acquired Hertz Global Holdings Inc. common stock between Jan. 6, 2023, and April 24, 2024, inclusive, and suffered injuries as a result.
Additional details
- Both individuals and entities can be class members.
- The actual beneficial owner or a legal representative must submit the claim.
- Joint owners must each sign the claim form.
- Executors, administrators, trustees and other representatives may submit claims on behalf of others and must provide proof of authority.
- Claimants filing for multiple accounts must submit a separate claim form for each account type.
How much can class members get?
The total settlement fund is $10,000,000. The amount each class member will receive depends on several factors:
- The number of valid claims submitted
- The number of shares purchased or acquired during the class period
- The timing of each purchase and sale
- The total recognized claims of all claimants
The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:
- The estimated average recovery is about $0.07 per allegedly damaged share before deductions. After estimated attorneys' fees, expenses and the service award of about $0.02 per share, the estimated average recovery is about $0.04 per share.
- Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
- The settlement administrator will calculate a recognized loss for each share class members bought during the class period using the court-approved plan of allocation:
- Alleged artificial inflation ranges from $1.01 to $2.43 per share depending on the purchase date (Table 1 on Page 12 of the settlement notice).
- The lookback average is the average closing price from April 25, 2024, through the sale date (Table 2 on pages 14-15 of the settlement notice).
- For shares sold before Oct. 26, 2023, the recognized loss is zero.
- For shares sold from Oct. 26, 2023, through April 24, 2024, the recognized loss is the lesser of the purchase-date inflation minus the sale-date inflation or the purchase price minus the sale price.
- For shares sold from April 25, 2024, through July 23, 2024, the recognized loss is the least of the purchase-date inflation, the purchase price minus the sale price or the purchase price minus the lookback average.
- For shares held as of the close of trading on July 23, 2024, the recognized loss is the lesser of the purchase-date inflation or the purchase price minus $4.25, the average closing price during the 90-day lookback period.
- Claimants with an overall market gain on their class-period Hertz trades will have a recognized claim of zero. Recognized claims cannot exceed a claimant's actual market loss.
- The settlement administrator will set any recognized loss that calculates to a negative number to zero.
- If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
- Class members whose payment would be less than $10 will not receive a payout.
How to claim a Hertz securities class action settlement payment
Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Jan. 8, 2027.
Settlement administrator's mailing address: Hertz Global Holdings Inc. Securities Litigation, c/o Claims Administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19103
Proof or documentation required to submit a claim
All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide holdings and transaction information, including:
- Number of shares held as of the opening of trading on Jan. 6, 2023
- Trade dates for purchases and sales from Jan. 6, 2023, through July 23, 2024
- Number of shares purchased, acquired or sold
- Total purchase, sale or acquisition price
- Number of shares held as of the close of trading on July 23, 2024
Class members must also provide documentation to support their holdings and transactions. Acceptable proof includes:
- Broker confirmation slips
- Broker account statements
- Other documentation of the transactions
Payout options
- Physical check
$10 million settlement fund
The $10,000,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $3,333,333
- Attorneys' expenses: Up to $300,000
- Service award to plaintiff: Up to $7,500
- Payments to eligible class members: Remainder of the fund
Important dates
- Deadline to file a claim: Jan. 8, 2027
- Opt-out deadline: Jan. 8, 2027
- Fairness hearing: Jan. 29, 2027
When is the Hertz securities class action settlement payout date?
The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Hertz and two individual defendants made misleading statements and omissions about demand for and forecasts regarding the company's electric vehicle rentals. The plaintiff claimed these statements artificially inflated Hertz's stock price and caused investor losses when corrective information entered the market.
The defendants denied all allegations of wrongdoing, but the parties agreed to settle given the risks and uncertainty of continued litigation.
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